Trying to make your savings work for you in the current economy is not an easy task; regular savings accounts are almost not worth considering from an investment perspective due to the low rates of interest they pay. This has led many people to look for the best money market accounts they can find to use a way to make money on their investments in a relatively safe environment.

Investing in stocks the traditional buy-and-hold way is now viewed with extreme skepticism (and rightly so) after the last 2 years of roller coaster stock markets and major regulatory failures that have cost investors billions. That is even true for the best performing mutual funds.

Money markets traditionally have been a great place to park larger amounts of savings or money that is earmarked for payments that are only made on an infrequent basis such as your property taxes.

Typically the best money market rate is more than the average savings account and are fully FDIC insured to $250,000 as long as you choose a bank that is covered under this insurance. While the internet makes online banking as simple as a few mouse clicks, while you are searching for the best online banking money market account, remember that not all banks have this protection, especially those that are based offshore.

However, there are some distinct disadvantages to even the best money market accounts that can make them a less than attractive investment vehicle. The most common disadvantage is that even though the bank will probably issue you a check book to go with your account, you are likely to be limited to no more than 3-5 withdrawals and deposits per month. They may even place a minimum limit on your deposits.

Even if your account is protected by the FDIC, any amount in your account over the limit will most likely be lost if the bank should go into bankruptcy. Your deposit can be assimilated into the assets of the bank at this point and you will most likely never see the money again as has been the case with thousands of depositors in the last 2 years. We have watched bank after bank collapse, which is why the FDIC raised the insurance levels to $250,000.

No matter whether you choose the best money market account or not, the interest rate your account draws is not guaranteed. Many banks use a much higher initial rate as a way to coax you into opening an account with them, and then drop it significantly after a period of time that may be as little as 90 days. As the markets fluctuate, you are likely to see your interest rates fluctuate right along with the markets, leaving the potential for earning significantly less than you might with another form of investment.

Bottom line: the best money market accounts are those that are insured by the FDIC, have interest rates that consistently equal to or great than the best CD money market rates, and have little or no limits on your withdrawals.